19, afore Judge G.W. King and a Jury, Albert Cecil Townsend, managing director of Messrs, Townsend, Day & Ca., Ltd., was charged on three counts: that on various dates the accused did make or publish or concur in: making or—publishing certain written statements which false, knowing same to be also, with intent to deceive or de fraud the Chartered Bank of India, Australia & China, The accused was represented by rE, L. Hartopp whilst Mr. A. G.
mossop, Crown Advotate, appeared for the prosecution. The juryman were Messrs, W. E. Anderson, W. H. Gouldbourn, W. Gater, J, B. Watson the court Mr, Mossop rs, Townsend, Day Ca. were regis Kong Ordinanc exporters of furs, skins and general produce and were known as a British-China company. After the company had been formed the acused approached the Chartered Bank and asked for credit banking facilities which were provided. They opened what is known as a packing credit account and were permitted overdrafts against stocks of goods which they were to hold in their godowns under trust to the Bank, Overdratts of Tls. 140,000
Various overdrafts were drawn and honoured the end of last year th portions xéduction which was made under pressure but the reduction was not Permanent and the overdrafts soon reached a total of some Tls. 140,000.
During the first quarter of this year the accused had made only two Shipments through the Bank amount-Jing to Tls. 41,000 which was credited to the overdraft account. However, this transaction brought an increas in the account, rather than a reduetion, because the accused had overdrawn by some Tls. 50,000 to purchase the goods used in the transaction, An investigation was made by the Bank and the outcome was that they asked that the goods carried by the accused should be removed to a neutral godown pending further inspection. The goods were subsequently removed to the godown of Mackenzie & Ca., and after invest ation it was found that there were wide discrepancies between the number and value of the goods and the number and valuation set them by the accused in his monthly report to the Bank.
Thereupon the Bank asked for an explanation and the accused replied that the goods had deteriorated without his knowledge and that serious Tosses had been suffered through she decline in the fur market. Fursrmore, that there had -been jeulty' with the -compradore. of 'Townsend, Day & Ca, and as a result the' accused believed: the come Mr. H. N. Steptoe, acting for the deputy Registrar of Companies, produced the file of Townsend, Day Ca, and said that its capital was! Tls. 80,000 Shanghai sycee, divided into 3,000 shares of Tls. 10 each. The shares were all issued and the last return was made on March 31 and showed the directors to be 'A. OG. Townsend, E. W.
dE. C. Day. A letter was} later received on October 6, 1928, from the accused announcing the resignation of Mr. E. W. Carter.
Mr. R. W. Roberts, accountant of the Chartered Bank, said that during last October the accused had overdrafts amounting to some Tls. 140,000 which were reduced to Tls. 101,000. Later the overdrafts increased and the Bank asked that the goods be moved to another godown which was done. An investigation was made by an expert and the findings were much smaller than those given in the monthly statement by accused to the Bank. The accused was asked to explain and spoke of trouble with his compradore but the witness had learned that the compradore had denied any liability. whatever.
Text read from the printed page and cleaned; old type leaves the occasional error.